Gifted Deposit from fianc!

silvercar

No reason why she can't register her interest on the deeds (at land registry) soon after completion. Also no reason why the lender would not allow a second party to go on the mortgage at a later date.

The sticking point for most people in your situation is justifying the mortgage on a single income, but if that isn't a concern I would go for it.

You would only have stamp duty (SLDT) to pay on half the value of the mortgage when you transferred it to joint ownership, and then only if that half share was greater than the stamp duty threshold.

kingstreet

terakris wrote: »

Also would it actually be a problem on the mortgage application if we did say she DOES have a 5% stake in the house, would the mortgage company then shy away from this as it would be 3 parties involved in the financials of the house but only 1 on the mortgage and i guess another "independant" party? Isnt this what those funny "paid deposit" schemes are on some overpriced newbuilds?

No. Newbuilds are nothing like this. It's pretty much impossible to get a mortgage for applicants different to those named on the deeds, although HSBC does have a unique approach which allows a single mortgage on a joint property or the other way round - I forget which.

terakris

silvercar wrote: »

No reason why she can't register her interest on the deeds (at land registry) soon after completion. Also no reason why the lender would not allow a second party to go on the mortgage at a later date.

The sticking point for most people in your situation is justifying the mortgage on a single income, but if that isn't a concern I would go for it.

You would only have stamp duty (SLDT) to pay on half the value of the mortgage when you transferred it to joint ownership, and then only if that half share was greater than the stamp duty threshold.

Id be more than happy to do that if its possible... but isnt that a massive loophole for the FTB/non-FTB couples not having to pay stamp duty and then add someone else on. as you say, if this is correct them not all FTB can get a mortgage in a single name so its not open to all... but for example....

House is worth/purchased at £150k and no stamp duty paid as im a FTB
Partners name is put on deeds and HMRC are notified using a transfer ownership form thingy for 50%.
As £75k (or 50%) of the house is below the £125k limit (or whatever it is) we wouldnt have to pay anything extra?

I guess as long as the mortgage company are ok with having another name on the deeds (would have to check this) this it might be possible....

I wonder if there is an exclusion somewhere to say if you have qualified for the no stamp duty charge, you would be liable to pay if you transfer a share of the property.

kingstreet

She can't become a joint owner of a mortgaged property without permission of the lender and her becoming a joint borrower with you. That's the transfer of equity process I mentioned earlier. Silvercar and I both covered this, mentioning the possibility of stamp duty issues, not guaranteeing that stamp duty would be payable.

If one of the forum solicitors is around, could she take a charge on the property at some point, or would non-disclosure (of this intention) to the mortgage lender at the outset be dishonest?